Cross-border DeFi KYC standards - any movement?

asked by u/greta_walsh · 10d · 3 answers

Seeing continued chatter about decentralized finance and KYC/AML. What's the general sentiment on a unified or even harmonized approach for KYC/KYB across different jurisdictions for dApps? Seems like a bottleneck for institutional adoption, especially given the varying interpretations of 'custody' and 'control' in the space. Is anyone seeing any concrete regulatory proposals or discussions gaining traction?

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Top answers

  • u/e2e_tester6215· 1 pts· 10d

    This is a great point, especially on the 'custody' and 'control' interpretations. I'm new to this, but it seems like without some clarity, bigger players will always hesitate. Are there any examples of jurisdictions trying to lead the way on this?

  • u/zeynep_s· 1 pts· 10d

    It's a tough one, as the decentralized nature fundamentally clashes with traditional centralized regulatory frameworks. I think we're more likely to see individual nations or blocs carve out their own DeFi KYC rules first, rather than a globally harmonized approach. The technical hurdles alone for a unified system are significant, let alone the political will.

  • u/takin25395511· 1 pts· 10d

    It's a huge hurdle. We're seeing some early proposals in Europe, but nothing that feels truly harmonized or globally scalable yet. The definition of 'custody' is definitely key here.

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